ERX vs QQQ
Direxion Daily Energy Bull 2X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ERX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ERX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.18% | |
| AUM | $239M | $496.3B | |
| Dividend Yield | 1.49% | 0.44% | |
| Holdings | 29 | 108 | |
| YTD Return | +87.23% | +16.23% | |
| 1Y Return | +111.94% | +26.23% | |
| 3Y Return (annualized) | +21.84% | +25.75% | |
| 5Y Return (annualized) | +43.46% | +14.78% | |
| Volatility (annualized) | 65.7% | 30.6% | |
| Max Drawdown | -99.6% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Mar 10, 1999 |
ERX vs QQQ Performance
Direxion Daily Energy Bull 2X ETF (ERX) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ERX returned +111.94% while QQQ returned +26.23%. Year to date, ERX is up 87.23% versus a gain of 16.23% for QQQ.
Over three years, ERX compounded at +21.84% per year against +25.75% for QQQ; over five years the annualized figures are +43.46% and +14.78% respectively. Across the full 18-year window we track, QQQ has the edge at +13.02% annualized vs -7.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERX has been the more volatile fund, with annualized monthly volatility of 65.7% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -99.6% for ERX and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ERX charges 0.91% per year while QQQ charges 0.18%. On a $10,000 position that is $91 vs $18 annually, a gap of $73 per year that compounds over a long holding period. On income, ERX currently yields 1.49% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ERX or QQQ?
ERX has an expense ratio of 0.91% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, ERX or QQQ?
Over the past year ERX returned +111.94% vs +26.23% for QQQ, so ERX leads on 1-year performance. Over the longest common window we track (18 years), ERX annualized -7.26% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ERX or QQQ?
ERX has been the more volatile fund at 65.7% annualized versus 30.6% for QQQ. Worst drawdown: ERX -99.6% vs QQQ -83.0%.
Should I hold both ERX and QQQ?
ERX and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ERX and QQQ?
ERX and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 124 unique securities.
Which pays a higher dividend, ERX or QQQ?
ERX yields 1.49% while QQQ yields 0.44%, so ERX currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.